A blog dedicated to helping Baby Boomers have a successful and healthy retirement. Michael is a retirement specialist with offices in West Chester PA and Wilmington DE. Serving the retirement needs for Brandywine Baby Boomers!

Friday, March 9, 2012

BIG Changes Coming to YOUR 401(k) Plan

There has been a two year rumbling from 401(K) plan administrators for the new regulations coming from the Department of Labor. These sweeping changes, currently scheduled for July 1st, will require a full disclosure of the fees associated with administration, management, and expenses of your 401(k) plan. I say, currently scheduled, because this date has been moved several times over the past 18 months.
The new disclosures cover both the direct and indirect compensation administers receive, the indirect fees have often gone undisclosed. These changes come at a time when participants have seen very low returns, yields on safe haven investments. It will prove to many in money market type plans, that they are actually loosing money over time.
Tune into RetireSmart Radio, with your host B Michael Shanley this week for an in depth look at these changes and special guest Anne Tergesen, journalist for the Wall Street Journal. She has been on the forefront of reporting the DOL changes, and the implications of full disclosure to the average participant.
The fallout of expensive plans is expected as participants turn to plan sponsors for relief from diminished returns, with zero protection from market downturns.
401(k) plans, are defined contribution plans, became popular in the early 1980's, today there is over $4.3 trillion in these plans. For more details on your impact, and those questions you may have about retirement planning, listen this Sunday March 11th, at 10:30 AM WDEL 1150AM. Remember to turn your clock ahead an hour!